Making More Money - example 1

My book's most blatant theme is that many, many businesses can use Agile+TOC to transform their software development teams from financial black holes into a gold mines. 

In my equally blatant on-going effort to promote my book and my own consulting services I am going to post some examples of how Agile+TOC can make these businesses much more money.

Let me give you a mock, but realistic, example.

Imagine one of CCXCO's many software development teams is made up of 10 staff each earning (for the sake of argument) £250* per day.  A little math reveals that CCXCO spends £2,500 each day to keep this team producing software. Assuming that there are 20 working days in a month then CCXCO pays out £50,000 each month on building software for this team alone.

Now, imagine that the team has just spent 6 months delivering a project using traditional methods.

The project cost £300,000.

Now, ask yourself: how much could CCXCO have saved if the project delivered a better product in 4 months, rather than 6 months?

That’s right: £100,000.

That is a lot of money even for a big company like CCXCO ... especially when you add it up for every software development team in the company.

That's the sort of saving that well most well run Agile+TOC projects can expect to achieve. 

CCXCO wasted £100,000 in that half of the year, for that team, because they didn't use Agile+TOC.

Most Agile+TOC projects can reasonably expect to finish in between half and two-thirds of the time a traditionally run project would. 

Why?  The first reason is that Agile+TOC projects they do far, far less rework.  The second reason is they build far fewer unwanted features.  The third reason, is that they force technical catastrophes (which only happen on some projects but often cause those projects to be cancelled) to happen earlier in the project when they are easier, quicker and cheaper to solve. 

Agile+TOC projects finish earlier.

Fortunately, that's only a tiny part of the good news.  More to come.

The unfortunate thing is that most businesses have no idea they are missing out on these savings.  That's one of the reasons why I've written my book.

* to convert each pound figure into American dollars using the current exchang rate, just change the symbol to $ and add another zero to the right of the orginal number.